President Trump announced on social media June 11, that the U.S. "deal with China is done." This announcement follows two days of intense trade talks in London involving U.S. Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and U.S. Trade Representative Jamieson Greer.
According to the announcement, the tariffs on Chinese origin goods will be 55%. The 55% includes a 10% reciprocal baseline tariff, 20% tariff in response to the fentanyl crisis at U.S. borders, and a 25% Section 301 tariff imposed by President Trump during his first term. In return, U.S. goods will face a 10% tariff upon entry into China.
In addition, "full magnets and any necessary rare earths," will be supplied to the U.S. by China. Correspondently, the U.S. will continue to allow Chinese nationals to attend American colleges and universities.
As expected, trade with China has been a major focus point for the second Trump Administration. In April, tension between the two governments reached its peak with escalating tariffs on both sides. In addition to the tariffs, the Chinese government imposed export controls on seven rare earth minerals.
At a meeting in Geneva last month, the U.S. and China agreed to pause the extreme additional tariffs for 90-days with a 10% baseline tariff remaining in effect. China also agreed to remove recent non-tariff countermeasures taken after April 2, which included the rare earths restrictions.
However, since then, the U.S. accused China of "slow-rolling" the approval process for rare earths export licenses. President Trump said China had "totally violated its agreement" with the U.S. Moreover, some U.S. automakers expressed concern over the lack of rare earths supply as these minerals are an integral part of every automobile.
Although the details of the new trade deal remain unknown, President Trump's statement outlines a framework for going forward.
Braumiller Law Group PLLC will continue to monitor any new developments on trade with China and provide updates as needed.
Check out our new Digital Magazine Get the inside scoop on the Braumiller Law Group & Braumiller Consulting Group "peeps." Expertise in International Trade Compliance.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
